In Denmark, a VAT invoice is mandatory to claim input tax credit. VAT-registered businesses are required to provide VAT invoices to customers for all taxable supplies, and failure to do so may result in a fine under Section 52(a) of the VAT Act.
However, VAT invoices are not required for exempt supplies within Denmark and exempt insurance and financial services supplied within the EU.
Denmark allows for simplified VAT invoices in specific situations. These include business-to-business (B2B) sales below 3,000 Danish kroner and retailers whose sales are primarily or exclusively business-to-consumer (B2C). In certain B2C sales cases, a till receipt may be considered sufficient. However, if the invoice amount for a service is equal to or exceeds 5,000 Danish kroner, it is always necessary to issue a regular invoice.
A simplified invoice must include specific information, such as:
According to Article 66 of the VAT Order, electronic invoicing is generally not obligatory in Denmark. However, for business-to-government (B2G) transactions, it is mandatory as stated in BEK no. 206 of March 11, 2011. To send electronic invoices to public entities, there are several options available, including utilizing the PEPPOL network, a third-party invoicing provider, or the Danish government’s NemHandel platform.
When it comes to other recipients, electronic invoices can be transmitted through practical means without any particular validation or reporting requirements. In Denmark, electronic invoicing is primarily voluntary, except for B2G transactions where it is compulsory, and there are specific methods in place to send electronic invoices to public entities.
Last Updated: 27/12/2023
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